are you expected to cancel cable, other unneccessary things?

[lindsay2181]

still considering filing BK in march or so. i need a little bit more time to come up with attorney fees. we got our tax refund, and i spent most of it wisely, on groceries, baby needs, car insurance, etc. and i put away $1k towards attorney fees. i figure i will need a couple hundred more, and will take a little out of my husband's next few checks.

in the meantime, i'm wondering if people are expected to cancel their cable, etc. we have very basic cable and internet combined, our bill is $43/month. my husband wants to cancel the cable portion and switch to dish network's 19.99 package instead and just keep internet. i thought maybe we could just pay a whole year (about $300) while we have the tax refund money but someone here suggested that would be a luxury purchase? so should we even get it at all, paying each month may still be a luxury purchase? i am not sure if that would be okay, we'd be spending $10 more a month than we have been. would that look bad? would they expect us to cancel what we already have all together?

i know, i know...an attorney would probably be able to answer such questions at an initial consultation right? i NEED to do that...just haven't had a chance, i am on partial bedrest and will be having a baby in the next few weeks. hoping to get an appointment or two soon after the baby is here.

[BKDefender]

lindsay2181: If your income is less than the median income for filing a chapter 7 then it doesn't really matter how much you're paying for cable or Internet, you have the ability to file chapter 7. The only time your actual expenses will become an issue is if you're over the median income and must show necessary expenses as a special circumstance to pass the means test.
The only thing that the trustee's really care about, if you're under median, is your assets not your expenses.

--William

[BobMango]

lindsay, from my experience I would say no need to cancel your cable in relation to the filing. There may be other good reasons to do so though.

I was barely under the median and there were no questions regarding our expenses. If you are filing a Chapter 7 you may have a similar experience. Chapter 13 is a different matter since your income and expenses will help determine your pay back amount.

Where your schedules I and J will come into play in a Chapter 7 is if you are reaffirming any debt. In that case you need to have enough positive DMI to show that the reaffirmation is not a hardship. You can reaffirm without a positive DMI, but it is more difficult.

[flyinbroke]

I have to do a 13, and from what was left in disposable income once my estimated plan was done, cable and internet were not accounted for so I can only presume that they are both considered luxuries or unnecessary expenses. Either that, or my food per month should be about 30 bucks.

[Clouddancer]

Sounds like you need to ask your attorney about that.

[Bell30656]

I was over median but passed the means test. At the time of filing, spelled out in my schedules was cable, internet, cell and home phone. No one questioned it even slightly.

[researchmode]

I was wondering the same thing! Thanks for asking that question.

I'm so terrified that I'm going to be grilled over every decision I've made! Like cable and so forth. We're under the median, however, so I guess from what I've just read we might not be grilled.

When my mom went through bankruptcy (my dad died and left them with a ton of cc debt) they didn't ask her anything like that, but it was in 2005 before the laws changed so I'm not sure how "like" that it will be.


~ResearchMode

A mom on the Gulf Coast of Florida in process of filing CH7 and blogging about it:
(link removed)

[kornellred]

Folks - bankruptcy is not a punishment. No one expects a debtor to stop enjoying life - we need outlets and entertainment in order to maintain balance. A trustee might be inclined to ask a debtor to give up the super-duper premium channel movie and sports package, or go for a more basic cell phone plan, but get rid of them? No, that is not required by law. Entertainment and communications services are legitimate expenses.

[UpsideDownMI]

I have premium cable with HD, high speed internet, and cell phones with data packages. None of my expenses were questioned. Your attorney will know what dollar amounts of expenses he/she can "sell".

[DebtHater]

I have a $150/month cable, internet, phone bill and $70 cell phone bill. Trustee didn't say boo about it.

[ForumReader]

Same here, I was way below median and I listed my cable, phone and internet combined at $150. Also listed my cell phone for an additional $35. No questions on these by the trustee. Best wishes

[viking64]

Ditto to the previous 2. My cable, internet, and home phone are a Verizon Fios package for a standard rate for our area, so nothing really stands out there.

I have an iPhone with a 900 minute plan - nothing said about it either. Niether by the attorney in prepping forms, or trustee at 341.

This is in a ch 7.

Every region is different and your attorney will know best, but I suspect if your expenses are on the average or below average side, you can make it work. Your cable bill really isn't much in today's world.

My sense is that BK is about learning to live responsibly at a realistic level in today's world - not wearing hand-me down underwear, talking on a party line, and eating top ramen for 5 years; nor buying a new computer every 3 years just because you want it, purchasing top of the line just because it has more bells and whistles, eating only Kobe beef, etc.

That said, if you need to cut expenses to meet a budget, cable is obviously more discretionary than food, medical, or clothing. I was prepared to go to broadcast channels if I had to, but I was determined to keep the highest quality internet possible (which would probably have wiped out the need for cable anyway, given video-streaming).

[lindsay2181]

viking64 i agree with you about living responsibly. i think we are a VERY frugal family...i buy most of our clothes secondhand at Goodwill or consignment stores. I clip coupons, always looking for deals and ways to save. I don't even know what Kobe beef is, LOL!

The thing with the cable plan we have, it's pretty much ONLY the broadcast channels that we have....I was looking into getting a converter box and antanea (sp?) so we could get the same channels and it would be cheaper in the long run. But then we saw how Dish Network had this 19.99 package and figured, we could get way more channels...i still haven't called to get hooked up but I think I might do it today.

Thanks for ALL the replies everyone!

[SMinGA]

As far as I know - having SOME reasonable entertainment is ok. Like others, we have cut back in many places in the past year. Cut down on our cable plan, cut out fast food/eating out, buy generics whenever possible, etc. Not willing to cut out internet - kids need it for school/research. Not willing to cut out cable totally as other forms of entertainment have already been stricken.

Our expenses at our 341 hearing (13) were not questioned, even though it included cable & internet.

There does come a time when we (in general) must figure out what we 'need' and what we can afford. Can't always increase income, and if there is not enough money left to handle the needs then YES I'd cut the cable. But if your budget has room for it without sacrificing needs, then its a relatively inexpensive entertainment outlet.

[HakunaMatata]

Don't forget to question your expenses WITH THE PROVIDERS. I've never had cable TV (no desire); although, I've had internet services since the advent of the cable modem. I contacted my provider yesterday to express my dissatisfaction with rising costs. The rep offered a "great bundle package" and I firmly declined. I offered competitor's pricing and commented on current economic conditions. As a result, the rep discounted my bill by $20/month since I've "been such a great customer".